After the announcement of a 3-10 percent hike in the MGNREGA wage rates for the year 2024-25, just before the Lok Sabha elections, Gujarat finds itself among the top 10 states in terms of percentage increase in the wage rate of MGNREGA workers in nominal terms for the financial year 2024-25. Came into force from April 1, 2024, the new rate card shows Gujarat with a hike of 9.4%, just behind Goa (10.6%), Karnataka (10.4%), Andhra Pradesh (10.3%), Telangana (10.3%), Chhattisgarh (10%) and Madhya Pradesh (10%).
However, in terms of actual payment to the labourers, Gujarat does not fare well. Gujarat is far behind states like Sikkim, Haryana, Goa, Karnataka, Punjab, Tamil Nadu, Andhra Pradesh, and Maharashtra. Gujarat is paying just Rs. 280 daily to the MGNREGA beneficiaries whereas the same wage is as high as Rs. 374 in Haryana and Rs.322 in Goa. In other words, Gujarat is paying 25% less daily wages than what is paid to MGNREGA workers in Goa.
Several states and union territories pay minimum wages of Rs.300 or more. Karnataka, Kerala, Punjab, and Tamil Nadu pay minimum wages of Rs. 349, Rs. 346, Rs. 322, Rs. 319 daily respectively. Andhra Pradesh and Telangana pay Rs.300 each. Neighbouring Maharashtra pays Rs. 295 per day. It must be noted that the minimum wage for MGNREGA workers is more than Rajasthan ( Rs. 266), West Bengal ( Rs. 250), and Madhya Pradesh ( Rs. 243). Bihar and Chhattisgarh make payment of Rs.245 per day.
Earlier this year, the Parliamentary Standing Committee on Rural Development and Panchayati Raj had said that the wages were inadequate and not in consonance with the rising cost of living. The committee had also pointed out the high range of variation in MGNREGS wages across states. The Anoop Satpathy Committee had recommended that the wages under MGNREGA should be Rs 375 per day.
Mahatma Gandhi National Rural Employment Guarantee Act 2005 or MGNREGA is an Indian social welfare measure that aims to guarantee the ‘right to work’. This act came into effect in February 2006 under the UPA government of Prime Minister Manmohan Singh. It aims to enhance livelihood security in rural areas by providing at least 100 days of wage employment in a financial year to at least one member of every household whose adult members volunteer to do unskilled manual work with women being guaranteed one third of the jobs made available under the MGNREGA. Employment is to be provided within 5 km of an applicant’s residence. Employment under MGNREGA is a legal entitlement. In its World Development Report 2014, the World Bank called it a “stellar example of rural development”.
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